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Iran
Size: 1,647,240 square kilometers.
Population: 61 million.


Iran is seeing the first fruits of its ambitious rearmament program. The Islamic republic has completed its Shihab-3 intermediate surface-to-surface missile -- with a range of 1,300 kilometers -- and has begun serial production. The success has accelerated work on Iran's Shihab-4 missile, with a range of up to 2,500 kilometers. Teheran, with massive Russian help, is also advancing rapidly in the development of nuclear weapons capability. Iran is expected to achieve this capability as early as 2004.

The U.S.-led war in Afghanistan has concerned Iran. The Islamic republic fears a permanent British and U.S. presence in neighboring Afghanistan. This would impose restrictions on Iran's plans for regional dominance.

Closer to home, Iran is moving closer to a national crisis over direction. The liberal opposition to the regime is growing bolder and Iranian students are openly flouting the principles of the regime and embracing the United States. The outcome of this struggle could decide Iran's foreign policy, including its support for Islamic insurgency and attitude toward the United States.


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